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Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its
Sultan Company uses an activity-based costing system. At the beginning of the year, the company made the following estimates of cost and activity for its five activity cost pools: Expected Overhead Activity Measure Direct labor-hours Expected Activity 40,000 DLHS Activity Cost Pool Cost $400,000 11,150 $ 82,820 $ 73,800 $ 279,500 Labor-related Purchase orders Number of orders 223 orders Number of part types Parts management Board etching General factory 101 part types 1,640 boards 21,500 MHs Number of boards Machine-hours Required: 1. Compute the activity rate for each of the activity cost pools. 2. The expected activity for the year was distributed among the company's four products as follows: Expected Activity TMT Activity Cost Pool Labor-related (DLHS Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) Product A Product B Product C Product D 23,300 4,300 5,700 85 6,700 63 39 36 37 15 38 11 760 300 580 3,900 8,800 2,500 6,300 Using the ABC data, determine the total amount of overhead cost assigned to each product Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each of the activity cost pools. Activity Cost Pool Activity Rate $ Labor-related 10 per DLH Purchase orders 50 per order Parts management 820 per part type $ Board etching $ 45 per board General factory $ 13 per MH Required 1 Required 2 > Using the ABC data, determine the total amount of overhead cost assigned to each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the ABC data, determine the total amount of overhead cost assigned to each product. Overhead Cost Assigned Product C Activity st Po Pro ct B Prod D ro Labor-related (DLHS) Purchase orders (orders) Parts management (part types) Board etching (boards) General factory (MHs) 0$ O 0 Total Required 1 Required 2
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